TITLE IV--STUDENT ASSISTANCE

PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS

(a) ELIGIBLE EMPLOYMENT- Section 443(b)(1) (42 U.S.C. 2753(b)(1)) is amended by inserting `, including internships, practica, or research assistantships as determined by the Secretary,' after `part-time employment'.

(b) COMMUNITY SERVICE- Section 443(b)(2)(A) is amended--

(1) by striking `in fiscal year 1994 and succeeding fiscal years,' and inserting `for fiscal year 1999,'; and

(2) by inserting `(including a reasonable amount of time spent in travel or training directly related to such community service)' after `community service'.

(c) TUTORING AND LITERACY ACTIVITIES- Section 443 is amended--

(1) in subsection (b)(2)--

(A) by striking `and' at the end of subparagraph (A);

(B) by redesignating subparagraph (B) as subparagraph (C); and

(C) by inserting after subparagraph (A) the following:

`(B) for fiscal year 2000 and succeeding fiscal years, an institution shall use at least 7 percent of the total amount of funds granted to such institution under this section for such fiscal year to compensate students employed in community service, and shall ensure that not less than 1 tutoring or family literacy project (as described in subsection (d)) is included in meeting the requirement of this subparagraph, except that the Secretary may waive this subparagraph if the Secretary determines that enforcing this subparagraph would cause hardship for students at the institution; and'; and

(2) by adding at the end the following new subsection:

`(d) TUTORING AND LITERACY ACTIVITIES-

`(1) USE OF FUNDS- In any academic year to which subsection (b)(2)(B) applies, an institution shall ensure that funds granted to such institution under this section are used in accordance with such subsection to compensate (including compensation for time spent in training and travel directly related to tutoring in reading and family literacy activities) students--

`(A) employed as reading tutors for children who are preschool age or are in elementary school; or

`(B) employed in family literacy projects.

`(2) PRIORITY FOR SCHOOLS- To the extent practicable, an institution shall--

`(A) give priority to the employment of students in the provision of tutoring in reading in schools that are participating in a reading reform project that--

`(i) is designed to train teachers how to teach reading on the basis of scientifically-based research on reading; and

`(ii) is funded under the Elementary and Secondary Education Act of 1965; and

`(B) ensure that any student compensated with the funds described in paragraph (1) who is employed in a school participating in a reading reform project described in subparagraph (A) receives training from the employing school in the instructional practices used by the school.

`(3) FEDERAL SHARE- The Federal share of the compensation of work-study students compensated under this subsection may exceed 75 percent.'.

(d) USE OF FUNDS FOR INDEPENDENT AND LESS THAN FULL-TIME STUDENTS- Paragraph (3) of section 443(b) is amended to read as follows:

`(3) provide that in the selection of students for employment under such work-study program, only students who demonstrate financial need in accordance with part F and meet the requirements of section 484 will be assisted, except that if the institution's grant under this part is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution on less than a full-time basis, or (B) independent students, a reasonable portion of the grant shall be made available to such students;'.

`(5) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement shall not exceed 75 percent, except that--

`(A) the Federal share may exceed 75 percent, but not exceed 90 percent, if, consistent with regulations of the Secretary--

`(i) the student is employed at a nonprofit private organization or a government agency that--

`(I) is not a part of, and is not owned, operated, or controlled by, or under common ownership, operation, or control with, the institution;

`(II) is selected by the institution on an individual case-by-case basis for such student; and

`(III) would otherwise be unable to afford the costs of such employment; and

`(ii) not more than 10 percent of the students compensated through the institution's grant under this part during the academic year are employed in positions for which the Federal share exceeds 75 percent; and

`(B) the Federal share may exceed 75 percent if the Secretary determines, pursuant to regulations promulgated by the Secretary establishing objective criteria for such determinations, that a Federal share in excess of such amounts is required in furtherance of the purpose of this part;'.

(f) AVAILABILITY OF EMPLOYMENT- Section 443(b)(6) is amended by striking `, and to make' and all that follows through `such employment'.

(g) ACADEMIC RELEVANCE- Section 443(c)(4) is amended by inserting before the semicolon at the end the following: `, to the maximum extent practicable'.